Charting America's Ever Shrinking "Revisionist" Economy

This has been the recovery of downward revisions - each annual revision to payrolls and GDP since the recovery started in 2009 revealed an even sharper contraction and weaker recovery. BofAML believes this year’s revision, which is released with the Q2 GDP report on Friday, will once again show an even slower start to the recovery with growth revised lower in 2009 and 2010, and modestly higher in 2011. While it is good news that growth could be revised higher in 2011, it appears that it will only be marginal. The downward revisions to growth in 2009 and 2010 will still leave the level of GDP lower and, hence, the output gap larger. This shows that the economy has made even less progress in healing from the deep recession. The severity and duration of the recession was understated in real time and the recovery was overstated. This suggests that monetary policy may not have been easy enough over the past several years - and therefore the current slowdown is even more significant.

The Bureau of Economic Analysis (BEA) revises the National Income and Products Accounts (NIPA) every year along with the first estimate of Q2 GDP. This will not only affect GDP, but also income and PCE inflation. Thus, the saving rate and core PCE deflator could be altered. The revisions are based on more comprehensive source data and, on occasion, reflect methodology changes. There were fairly significant methodology changes last year, but this year, the revisions mostly reflect more complete data and updated seasonal adjustments. Data are subject to revision back to Q1 2009.

and then what? Consumers aren't spending, they are borrowing. There is a difference Robo.

To that end there is far less borrowing going on. Inventories are stagnating. Under Armour beat estimates because of massive channel stuffing in the footwear category. Inventory I can tell you did not sell at retail. Under Armour will need to take back at least $250 million in product this year. Under Armour made a huge bet on an oudoor shoe designed through a crowdsourced design contest. The winning shoe was picked by executives who had no experience in footwear, and designed by a student with no real world experience. To say the product flopped would be an understatement.

Do you think Ally finanical would be amking billions in subprime loans to get rid of GM inventory if it didn't have the belief the US government would backstop the losses?

Pull a existing post of a fence, dig it's hole down deeper, cut bottom off post, put post/fense back. The post/ fense will prevent the detector from getting over the buried object, also easy to find latter.
Other people's property too. A warrant to search other's is a bit more problematic.

Its not just the government. Every single economist, that would be 70 of them, that Bloomberg polled for an ISM predictive number were wrong. They all "guessed" to the upside of the number which was 49.7. Anything under 50 signals a contraction. At some point you have to ask yourself what is the emotional investment in pretending things are better than they really are and what are these pretenses costing us?

"This suggests that monetary policy may not have been easy enough over the past several years-" Bwahaaaaaaa!!! What we need to do is prrrrrrrrrrrrriiiiiiiiiiiiiiiiiiiiiiiiiiiiinnnnnnnnnnnnttttttttttttttttttttttt! Instead of 40 acres and a mule how about 100k and a Escalade.